Posts in this series
So as I mentioned in a previous post from July, the wife and I have read Dave Ramsey’s The Total Money Makeover (which I think would be a lot funnier if it had my typo and it were a “Monkey Makeover”, but I think the History Channel already has that show). So we’ve started the fun. She asked me on the 25th when I wanted to start. August first.
Starting in the hole: $74,114.30. (Includes the fancy new minivan.)
Targeted debt-free date, per debt snowball calculator: August 2016(!)
No, really. I looked at the numbers. In August 2016, we’ll be down to our rent payment and utilities, and that’s it. (Provided no nasty emergencies come up.)
That’s unreal. Here’s how it’s progressing.
Step One: Build up the $1000 emergency fund.
Our previous emergency funds were devastated by my long stint of unemployment. So it was time to build up that fund. It wasn’t August 1st yet, but I went over to my Sharebuilder account and cleaned out my limited holdings in Apple, Starbucks, and Sirius/XM (the last of which I made a fucking killing from). That was enough to establish the basic emergency fund. Easy peasy.
Step Two: Start the Debt Snowball
We chopped up all of our credit cards. Every last one. Because that’s how this party goes.
Thus far we’ve paid off our following cards: Macy’s, Amazon.
Chase may happen this month, too.
Kate made me do the actual keyboard work. It was sheer joy paying them off.
To scrape together more money and accelerate the curve, we’re going to be having a massive garage sale later in August, and we’re getting rid of a ton of stuff. A fuckton. All that money will go toward the debt. (Maybe even get us done ahead of the curve? We’ll see.)
9/10. Enthusiastic, but also having a bit of trepidation. Not having the credit cards feels a bit like not having a safety net. That’s okay. This is a process. And I need to remember that. Having an actual end date in sight and a plan helps a lot.
To Be Continued…
I’ll be updating our status on this monthly. Because you’re going to be shocked.